Press Release

Income From Continuing Operations of $16.2 Million, or $0.18 Per Share

Reduces Inventory by $233 Million, or 15%

Repurchases $69 Million of 3.5% Convertible Notes

BLOOMFIELD HILLS, Mich., May 05, 2009 (BUSINESS WIRE) -- Penske Automotive Group, Inc. (NYSE: PAG), an international automotive retailer, today reported first quarter income from continuing operations of $16.2 million, or $0.18 per share. This compares to income from continuing operations of $32.3 million, or $0.33 per share, in the first quarter last year. In the quarter, the Company recorded a $6.5 million, or $0.07 per share, after-tax gain relating to the repurchase of $69 million principal amount of the Company's 3.5% Senior Subordinated Convertible Notes due 2026. Excluding this gain, adjusted income from continuing operations amounted to $9.7 million, or $0.11 per share.

Total revenue was $2.2 billion compared to $3.2 billion in the same period last year. The decline in revenue versus the comparable prior year period was driven principally by a 31.2% decrease in total retail sales. The retail sales decline included a 34.5% same-store retail revenue decrease, due largely to a 35.1% decrease in same-store new vehicle unit sales and changes in exchange rates. Despite broad weakness in the new vehicle market in the U.S. and the U.K., the Company's used vehicle business performed relatively well. Retail used units sold increased 1.6%, despite a 4.2% decrease on a same-store basis, as customers looked for value-priced alternatives to meet their transportation needs. The service and parts business also performed well, declining 8.8% in total, but only 2.6% on a same-store basis excluding changes relating to exchange rates.

"In light of the challenging economic conditions in all of our markets, we are pleased with the performance of our business in the first quarter," said Penske Automotive Group Chairman Roger Penske. "Despite new vehicle sales approaching a 30 year low in the U.S. and a 30% decline in new vehicle registrations in the U.K. in the March registration period, our ability to reduce costs and inventory levels helped us achieve profitability in the first quarter. In total, we reduced our inventories by $233 million and improved our days supply of new vehicles to 69 days from 105 days at the end of 2008. I am particularly pleased to note that the cost reduction initiatives implemented by the Company have resulted in a decrease in SG&A as a percentage of gross profit to 85.0% in the first quarter, compared to 89.4% on an adjusted basis in the fourth quarter of 2008."

Mr. Penske continued, "We continue to evaluate ways to operate more efficiently, and remain focused on maintaining liquidity and flexibility. I am pleased to report that we are in compliance with all of our debt covenants, and expect to remain in compliance over the next twelve months."

Securities Repurchase Authority

The Company's Board of Directors previously approved repurchases of up to $150 million of our outstanding common stock, debt and convertible debt. During the first quarter, the Company repurchased $69 million principal amount of its 3.5% Senior Subordinated Convertible Notes due 2026 for $52 million in cash. After these purchases, the Company has an additional $44 million remaining under its securities repurchase authority. As of March 31, 2009, approximately $306 million principal amount of the 3.5% Senior Subordinated Convertible Notes due 2026 remained outstanding.

smart USA

During the first quarter, smart USA wholesaled 5,714 units, and for the year expects to wholesale approximately 20,000 units. In addition, smart USA's distribution of parts is increasing due to the growing number of smart units in operation. During the quarter, smart USA approved two new retail centers, expanding the smart retail network in the U.S. to 75 franchises.

Conference Call

Penske Automotive will host a conference call discussing financial results relating to the first quarter of 2009 on May 5, 2009, at 2:00 p.m.EDT. To listen to the conference call, participants must dial (800) 230-1096 [International, please dial (612) 332-7515]. The call will be simultaneously broadcast over the Internet through the Penske Automotive Group website at www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 310 retail automotive franchises, representing 40 different brands and 25 collision repair centers. Penske Automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 158 franchises in 19 states and Puerto Rico and 152 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is also the exclusive distributor of the smart fortwo through its wholly-owned subsidiary smart USA Distributor LLC. smart USA supports 75 smart retail centers in the United States. Penske Automotive is a member of the Fortune 200 and Russell 1000 and has approximately 14,000 employees. smart and fortwo are registered trademarks of Daimler AG.

Caution Concerning Forward Looking Statements

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s future sales and earnings potential and its ability to reduce its variable expenses. Actual results may vary materially because of risks and uncertainties, including external factors such as consumer credit conditions, any potential restructuring of the U.S. automotive sector, macro-economic factors, interest rate fluctuations, changes in consumer spending and other factors over which management has no control. These forward-looking statements should be evaluated together with additional information about Penske Automotive's business, markets, conditions and other uncertainties which could affect Penske Automotive's future performance. These risks and uncertainties are addressed in Penske Automotive's Form 10-K for the year ended December 31, 2008, and its other filings with the Securities and Exchange Commission ("SEC"). This press release speaks only as of its date, and Penske Automotive disclaims any duty to update the information herein.

This release contains certain non-GAAP financial measures as defined under SEC rules, such as adjusted income from continuing operations and related earnings per share, which exclude certain items disclosed in the release. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure and the period-to-period comparability of the Company's results from operations.

PENSKE AUTOMOTIVE GROUP, INC.

Consolidated Statements of Income

(Amounts In Thousands, Except Per Share Data)

(Unaudited)

First Quarter

2009

2008

Revenues:

New Vehicle

$972,127

$1,625,950

Used Vehicle

614,630

794,063

Finance and Insurance, Net

48,409

73,877

Service and Parts

327,554

359,142

Distribution

80,113

63,770

Fleet and Wholesale Vehicle

115,043

258,535

Total Revenues

2,157,876

3,175,337

Cost of Sales:

New Vehicle

900,750

1,489,357

Used Vehicle

558,650

728,295

Service and Parts

150,453

157,885

Distribution

68,314

53,617

Fleet and Wholesale Vehicle

111,418

257,696

Total Cost of Sales

1,789,585

2,686,850

Gross Profit

368,291

488,487

SG&A Expenses

313,002

394,072

Depreciation and Amortization

12,872

13,291

Operating Income

42,417

81,124

Floor Plan Interest Expense

(9,515

)

(17,026

)

Other Interest Expense

(14,494

)

(11,911

)

Debt Discount Amortization

(3,638

)

(3,496

)

Equity in Earnings of Affiliates

714

1,392

Gain on Debt Repurchase

10,429

- -

Income from Continuing Operations Before

Income Taxes

25,913

50,083

Income Taxes

(9,717

)

(17,809

)

Income from Continuing Operations

16,196

32,274

Income from Discontinued Operations, Net of Tax

6

57

Net Income

16,202

32,331

Income (Loss) Attributable to Non-Controlling Interests

80

(435

)

Net Income Attributable to Penske Automotive Group Common Shareholders